NOTICE IS HEREBY GIVEN that the undersigned Trustee, Peg R. Callaway, will on the 20th day of December, 2013, at the hour of 10:00 o’clock a.m. at the front entrance of the Okanogan County Courthouse, 149 North 3rd Avenue, in the City of Okanogan, County of Okanogan, State of Washington, sell at public auction to the highest and best bidder, payable at the time of sale, the following described real property, situated in the County of Okanogan, State of Washington, to-wit:

LOTS A AND B, AND THE NORTH 12 FEET OF LOT C, BLOCK 36, MAP OF F.M. BAUMS FIRST ADDITION TO THE TOWN OF CONCONULLY, AS PER PLAT THEREOF RECORDED IN BOOK “A” OF PLATS, PAGE 16, RECORDS OF THE AUDITOR OF OKANOGAN COUNTY, WASHINGTON. Assessor’s Property Tax Parcel Number: 0510360101.

Commonly known as 315 Main Street, Conconully, Washington 98819.

which is subject to that certain Deed of Trust dated May 11, 2006, and recorded May 15, 2006, Auditor’s File No. 3103176, records of Okanogan County, Washington, from Tim Moellendorf (now deceased) and Vernon M. Whitley, both single persons, as Grantors, to Transnation Title Insurance Company, as Trustee, to secure an obligation in favor of Hurvey Reese and Phyllis Reese, husband and wife, as Beneficiaries, and in which the Beneficiaries substituted Peg R. Callaway as Trustee pursuant to a Substitution of Trustee recorded with the Okanogan County Auditor on August 5, 2013, under Auditor’s File No. 3184546.

The interest of Vernon M. Whitley in the real property described herein was conveyed to Tim Moellendorf by way of that certain Quit Claim Deed dated June 8, 2010, recorded June 23, 2010 with the Okanogan County Auditor under Auditor’s File No. 3155831.

II.

No action commenced by the Beneficiary of the Deed of Trust is now pending to seek satisfaction of the obligation in any Court by reason of the Borrower’s or Grantor’s default on the obligation secured by the Deed of Trust.

III.

The defaults for which this foreclosure is made are as follows:

FAILURE TO PAY WHEN DUE THE FOLLOWING AMOUNTS WHICH ARE NOW IN ARREARS:

A) Failure to make monthly payments from and after November, 2012 and failure to pay the final balloon payment and accrued interest due and payable on July 1, 2013:

TOTAL BALLOON PAYMENT, ACCRUED INTEREST, BUYER’S FEES AND LATE CHARGES DUE AND OWING AS OF JULY 31, 2013: $61,784.60, PLUS INTEREST ACCRUING AT $26.67 PER DAY FROM AND AFTER JULY 31, 2013 THROUGH SEPTEMBER 18, 2013 OF $1,306.83, PLUS INTEREST ACCRUING AT $26.67 PER DAY FROM AND AFTER SEPTEMBER 18, 2013, UNTIL PAID.

TOTAL MONTHLY PAYMENTS AND LATE FEES: $63,091.43.

Plus all attorney’s fees and costs and foreclosure fees and costs incurred. Default other than failure to make monthly payments:

B) Failure to pay and keep current the real property taxes for Okanogan County Tax Parcel #0510360101, which following amounts include interest, penalty, and statutory foreclosure costs, as applicable through September 2013: 2011 $2,037.42, 2012 $1,865.75, and 2013 $1,369.92, for a total of $5,273.09. TOTAL REAL PROPERTY TAXES: $5,273.09.

Other Defaults:

A) Allowance of the following to be filed against the real property described herein (as of September 16, 2013):

Okanogan County Treasurer

Notice of Personal Property Tax

Lien Upon Real Property

Okanogan County Auditor’s File

No. 3180387

(Owner/Reputed Owner: Tim Moellendorf)

State of Washington

Department of Revenue

Warrant for Unpaid Taxes No. 11-2-00681-8/11-9-00719-4;

Warrant No. 152589A

(Debtor: Salmon Creek Services, Inc.)

and

Warrant for Unpaid Taxes

No. 13-2-00036-1/13-9-00030-7

Warrant No. 167092A

(Debtor: Salmon Creek Services, Inc.,

dba Salmon Creek Market)

State of Washington Department of Labor & Industries

Warrant for Unpaid Workers’

Compensation Taxes

No. 12-2-00423-6/129-00425-8;

Warrant No. 0275619

(Debtor: Tim Moellendorf)

and

Warrant for Unpaid Workers’ Compensation Taxes

No. 13-2-00094-8/13-9-00056-1; Warrant No. 0281757

(Debtor: Tim Moellendorf, et al.)

and

Warrant for Unpaid Workers’ Compensation Taxes

No. 13-2-00272-0/13-9-00274-1; Warrant No. 0284396

(Tim and Spouse Moellendorf, dba

Salmon Creek Market)

Department of the Treasury

Internal Revenue Service

Notice of Federal Tax Lien

Identifying No. xxx-xx-4424

Okanogan County Auditor’s File

No. 3173744

(Taxpayer: Tim L. Moellendorf)

B) Notice of Claim of Lien filed by Town of Conconully for unpaid sewer charges, which Notice of Claim of Lien was recorded with the Okanogan County Auditor on June 27, 2013, Auditor’s File No. 3183427.

C) Failure to maintain insurance on the subject property.

IV.

The sum owing on the obligation secured by the Deed of Trust is: Principal $54,072.25, together with interest as provided in the Note or other instrument secured from the 5th day of November, 2012, and such other costs and fees as are due under the Note or other instrument secured, and as are provided by statute.

V.

The above-described real property will be sold to satisfy the expense of sale and the obligation secured by the Deed of Trust as provided by statute. The sale will be made without warranty, express or implied, regarding title, possession, or encumbrances on the 20th day of December, 2013. The defaults referred to in paragraph III must be cured by the 9th day of December, 2013, (11 days before the sale date), to cause a discontinuance of the sale. The sale will be discontinued and terminated if at any time on or before the 9th day of December, 2013, (11 days before the sale date), the defaults as set forth in paragraph III are cured and the Trustee’s fees and costs are paid. The sale may be terminated any time after the 9th day of December, 2013, (11 days before the sale date), and before the sale by the Borrower, Grantor, any Guarantor, or the holder of any recorded junior lien or encumbrance paying the entire principal and interest secured by the Deed of Trust, plus costs, fees, and advances, if any, made pursuant to the terms of the obligation and/or Deed of Trust, and curing all other defaults.

VI.

A written Notice of Default was transmitted by the Beneficiary or Trustee to the Borrower and Grantor at the following addresses:

Tim Moellendorf and Vernon M. Whitley

17125 453rd Ave. SE

North Bend, WA 98045

Estate of Tim L. Moellendorf,

Deceased

c/o Bess Derting

Smith & Derting, PLLC

P.O. Box 845

Okanogan, WA 98840

Tim L. Moellendorf P.O. Box 126

Conconully, WA 98819

Vernon M. Whitley

120 N. 2nd Street

Okanogan, WA 98840

Occupants

315 Main Street

Conconully, WA 98819

by both first-class and certified mail on the 5th day of August, 2013, proof of which is in the possession of the Trustee; and the written Notice of Default was posted in a conspicuous place on the real property described in paragraph I above on the 6th day of August, 2013, and the Trustee has possession of proof of such posting.

VII.

The Trustee whose name and address are set forth below will provide in writing to anyone requesting it, a statement of all costs and fees due at any time prior to the sale.

VIII.

The effect of the sale will be to deprive the Grantor and all those who hold by, through, or under the Grantor of all their interest in the above-described property.

IX.

NOTICE TO GUARANTORS, BORROWER, AND/OR GRANTORS OF A COMMERCIAL OBLIGATION SECURED BY THE DEED OF TRUST (IF APPLICABLE):

A) THE GUARANTOR MAY BE LIABLE FOR A DEFICIENCY JUDGMENT TO THE EXTENT THE SALE PRICE OBTAINED AT THE TRUSTEE’S SALE IS LESS THAN THE DEBT SECURED BY THE DEED OF TRUST.

B) THE GUARANTOR HAS THE SAME RIGHTS TO REINSTATE THE DEBT, CURE THE DEFAULT, OR REPAY THE DEBT AS IS GIVEN TO THE GRANTOR IN ORDER TO AVOID THE TRUSTEE’S SALE.

C) THE GUARANTOR WILL HAVE NO RIGHT TO REDEEM THE PROPERTY AFTER THE TRUSTEE’S SALE.

D) SUBJECT TO SUCH LONGER PERIODS AS ARE PROVIDED IN THE WASHINGTON DEED OF TRUST ACT, CHAPTER 61.24 RCW, ANY ACTION BROUGHT TO ENFORCE A GUARANTY OR, IF APPLICABLE, SEEK A DEFICIENCY JUDGMENT, MUST BE COMMENCED WITHIN ONE YEAR AFTER THE TRUSTEE’S SALE, OR THE LAST TRUSTEE’S SALE UNDER ANY DEED OF TRUST GRANTED TO SECURE THE SAME DEBT.

E) IN ANY ACTION FOR A DEFICIENCY, THE GUARANTOR WILL HAVE THE RIGHT TO ESTABLISH THE FAIR VALUE OF THE PROPERTY AS OF THE DATE OF THE TRUSTEE’S SALE, LESS PRIOR LIENS AND ENCUMBRANCES, AND TO LIMIT ITS LIABILITY FOR A DEFICIENCY TO THE DIFFERENCE BETWEEN THE DEBT AND THE GREATER OF SUCH FAIR VALUE OR THE SALE PRICE PAID AT THE TRUSTEE’S SALE, PLUS INTEREST AND COSTS.

F) If you are a borrower or a grantor, then to the extent that the fair value of the property sold at trustee’s sale to the beneficiaries is less than the unpaid obligation secured by the Deed of Trust immediately prior to the trustee’s sale, an action for a deficiency judgment may be brought against you for:

any decrease in the fair value of the property caused by waste to the property committed by the borrower or grantor after the Deed of Trust was granted; and,

any decrease in the fair value of the property caused by the wrongful retention of any rents, insurance proceeds, or condemnation awards by the borrower or grantor that are otherwise owed to the beneficiary.

The deficiency judgment may also include interest, costs, and attorney’s fees.

X.

Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the sale pursuant to RCW 61.24.130. Failure to bring such a lawsuit may result in a waiver of any proper grounds for invalidating the Trustee’s sale.

XI.

NOTICE TO OCCUPANTS OR TENANTS

The purchaser at the trustee’s sale is entitled to possession of the property on the 20th day following the sale, as against the Grantor under the Deed of Trust (the owner) and anyone having an interest junior to the Deed of Trust, including occupants who are not tenants. After the 20th day following the sale, the purchaser has the right to evict occupants who are not tenants by summary proceedings under the Unlawful Detainer Act Chapter 59.12 RCW. For tenant-occupied property, the purchaser shall provide a tenant with written notice in accordance with RCW 61.24.060.